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Edinburgh City Cultural Venues Study

Edinburgh City Cultural Venues Study

Item No 7 + EDI N BVRG H+ THE CITY OF COUNCIL

Edinburgh City Cultural Venues Study

Culture and Leisure Committee 6 May 2009

1 Purpose of report

1.I To provide an overview of the process and findings of the Edinburgh City Cultural Venues pdertaken over the past eighteen months in partnership with and to seek approval to initiate a suite of parallel actions to begin exploring and implementing the Study’s recommendations.

2 Summary

2.1 The Edinburgh City Cultural Venues Study provides a comprehensive, strategic overview of established and potential cultural venue provision in the city, covering venues with a minimum audience capacity of 200 which are owned by the public, voluntary and private sectors. The Study maps existing venue provision and developments which are currently proposed and identifies gaps which should be filled if the Council and a wide range of city partners are to deliver the cohesive cultural infrastructure appropriate to ’s capital.

2.2 The Study’s scope and ambition are far-reaching, looking not only at options for action for the next five years, but also at medium term action, up to 15 years ahead, and long term action for 20 years ahead. The report summarises the Study’s findings, detailing suggested options for the various cultural performance areas which were reviewed.

2.3 The unprecedented breadth of this ambitious Study’s findings will require concerted action by all relevant parties in the city. This report makes initial recommendations to launch what will be a connected suite of parallel actions to achieve some challenging, but essential, goals for the city. The scale of the investment required from all partners to meet these goals is necessarily large, and currently outwith the reach of the Council or any other single partner. The report recognises that the current financial climate will make effective action even more challenging, but the economic downturn and competition from other cities makes such action all the more essential to Edinburgh’s economic growth, quality of life and contribution to the nation’s cultural spirit. 3 Main report

3.1 For some time prior to the instigation of this Study, partner bodies and cultural sector colleagues had consistently highlighted the need for a strategic overview of capital development of cultural performance venues in the city which would more readily allow strategic partnership, investment and support. For example, agencies such as the Heritage Lottery Fund are keen to receive bids for support from applicants which have a clear strategic rationale in keeping with the best interests of the city as a whole. The need for such a study was reinforced by the 2006 Thundering Hooves report, which recommended that the Council undertake a development plan for the infrastructure, including venues, required for the success of the Festivals.

3.2 A Brief to address this need was therefore established setting key parameters: to gain an overview of cultural venue provision; to provide an investment toolkit; to make recommendations for future provision and priorities and provide evidence to plan in the short, medium and long term. The Brief is attached as appendix 1.

3.3 The scope included public, private and voluntary provision; venues with a minimum seating capacity of 200; permanent venues only; venues with a performance, cultural activity and participation purpose; and venues that are not primarily designed for hosting cultural events, but have capacity to do so, for example, sports stadiums, the Edinburgh International Conference Centre and the Castle Esplanade.

3.4 A consultancy specialising in culture, leisure and sport, ‘pmp’, were appointed to undertake the Study. (See appendix 2 for further details about pmp.) The consultants were appointed jointly by the Council and Scottish Enterprise in late 2007 at a cost to the Council of f63,000. A copy of the Executive Summary of the Study is attached as appendix 3. Copies of the full 200-page Study can be made available to members on request. In addition, the full Study will be made available on the Council’s website.

Strategic Review

3.5 The majority of the Study’s consultation process was undertaken prior to the economic downturn. The current financial climate is the acknowledged context of any future financing solutions.

3.6 The consultants reviewed over 50 key reports and documents including the Thundering Hooves Report, Moving Image Strategy, Mid-scale Music Venue Review, Theatre Strategy, Corporate Plan and City Centre Development Strategy. Analysis of these documents informed the study process and findings.

Methodology

3.7 The consultants undertook a comprehensive consultation process. All those consulted were encouraged to make sure that all relevant parties were contacted and included. Over 100 stakeholders were consulted during more than 50 one-to-one interviews and through focus groups. Those originally consulted were also invited to presentations and discussion groups about the findings of the Study. A list of those consulted is attached at appendix 4. 3.8 Existing provision was mapped; the market assessed; all available information analysed; the toolkit developed and recommendations established.

Vision

3.9 All those involved agreed that Edinburgh’s year-round programme of cultural festivals and events should be supported by high quality services and infrastructure which is designed to meet all customers’ needs - to ensure that the city delivers what residents and visitors need and expect. In turn, this would help Edinburgh to build upon its reputation as a high quality, must see, contemporary European capital city, attracting greater numbers of visitors and more residents to its cultural offerings, and would reinforce its status as a creative and connected city, a city with the crucial ‘feelgood’ factor, and which promotes the wellbeing of its residents and visitors. This vision informed the Study as a whole.

Audit

3.10 The study reviewed 73 venues, looking in detail at the types of venue, their respective capacities, programme capability, use and quality.

3.1 1 The consultants assessed and analysed audience demand, looking at catchment, drive time, resident profile, visitor profile, comparative population with other UK cities and assessment of the impact of quality of experience on the likelihood of repeat visits. This established that there is a substantially higher than national average demand in Edinburgh for all art forms, other than cinema - circa 25% higher for plays, pop/rock concerts, opera and classical music.

Options for cultural performance areas

3.12 Future options for the following cultural performance areas were considered individually, and are described in turn below: drama/musicals; rock/pop; classical music; opera, dance, comedy and moving image.

3.13 The options for drama/musicals include improving the quality of existing venues to meet customer expectations; exploring opportunities to produce more work and contribute to the events calendar; and building upon existing cooperation between venues across key Scottish cities with a view to attracting more and better product to Scotland as a whole.

3.14 For rock/pop, there is a gap for a medium to large scale (up to 6,000) venue to host rocklpop concerts on a regular basis. Operators have very limited appetite for a larger scale venue (eg 1O,OOO+). The options include investigating partner opportunities with the private sector to deliver a medium scale venue with an entertainment focus ie a venue which has a hybrid design and the technical ability to reduce capacity to meet the needs of other events, such as conferences.

3.1 5 The assessment of demand for classical music suggests that there is insufficient demand to support a new commercially sustainable classical music venue. Instead, the options include looking at developing a classical music venue within a hybrid or multi-use venue. 3.1 6 The Study found that current provision is considered adequate for opera and therefore no action is required for that area.

3.1 7 Similarly, no specific action is required for dance unless proposals for a new hybrid venue progress to meet identified demand in other areas. If such a venue is developed, the inclusion of appropriate flooring and ancillary facilities for dance should be considered as part of that multi-use venue.

3.18 The Study noted year-round audience growth potential for comedy which could be met through further investigation of current franchise options.

3.19 For the moving image sector, the Study noted the new venue proposed by the Filmhouse and Edinburgh International Film Festival and acknowledged that this fit well with the Study’s strategic Vision.

3.20 Community provision was mentioned throughout the consultation process. While this fell outwith the parameters of the Study, existing projects such as the Out of the Blue Drill Hall were noted, and the limited cultural event provision in the north of the city highlighted.

3.21 In summary, the key options would:

0 improve the quality of existing venues;

0 increase the quantity of quality ‘product’ coming to the city; and

0 meet identified gaps and market need.

3.22 Comparator city research highlighted that the demand for cultural events and facilities can, in some cases, be stimulated by new provision. Intelligent investment in new cultural facilities, particularly iconic facilities, in cities such as Manchester and Bilbao has helped further boost tourism due to the appeal of museums, art galleries, concert halls, conference centres and arenas.

3.23 The Study has also recommended the exploration of alternative management options for the city’s cultural venues with a view to establishing whether there might be genuine opportunities for improved efficiency and operational savings.

Scale of capital investment required and toolkit to prioritise investment

3.24 It is vital to recognise that the options listed above for some of the cultural performance areas in the city require to be considered by a range of stakeholders, not just the Council, over the medium to long term: a period of up to 20 years. One of the Study’s key findings is that the long term investment required by relevant owners and operators of cultural venues in Edinburgh is of an unprecedented scale for the city - a total requirement of around €200 million - which means that although the Council will be a key partner in any process, the assessment and implementation of options clearly cannot progress through the Council alone. Other public sector funders such as the Lottery and Historic Scotland, as well as trusts and foundations and the private sector, will all have to play their part. The total requirement of around f200m compares favourably to the investment made by other major cities. For example, Manchester has invested over f200m in cultural facilities over the last decade while Newcastle Gateshead had invested over f 350m in new cultural facilities.

3.25 The consultants shared their potential three tier approach to a financing strategy in separate discussions with Council officers and with Scottish Government officials, based on the following Study findings:

0 a minimum of f25m would address the current basic requirements of existing venues across the city;

0 c. E 1OOm would bring the venues up to a competitive international standard; and

0 c. f200m would place Edinburgh at the forefront of venue provision in the world.

3.26 As part of the Study, a priority investment toolkit was developed to assess and prioritise capital projects through a two stage process - strategic assessment, then deliverability. Such prioritisation based on clear principles and a strategic vision understood and shared by all is particularly vital in the current economic climate, to make optimum use of scarce capital resources. While work continues on a finance strategy, progress can still be made on an incremental basis by the Council and other partners, and prioritisation decisions about current proposals (and any future proposals) would be assisted by use of the toolkit. It is recommended that the Council adopt the toolkit to greatly assist its decision-making about capital projects in Council-owned cultural venues. Scottish Enterprise has already fully endorsed the priority investment tool kit.

3.27 The Strategic Assessment part of the toolkit is based on three key aspects of the city vision, described at paragraph 3.9 above, namely: ‘Must See City’; ‘Year Round Provision’ and ‘Creative and Connected’. Each of these headings is further broken down into key criteria (as can be seen in page xvi of the Executive Summary, which is attached as appendix 3). Weighted scores are assigned to each criterion in accordance with views expressed during the consultation process about their relative importance.

3.28 Stage Two of the toolkit involves a thorough practical assessment process covering capital and business development criteria. The overall process is captured in the diagram on page xv of the Executive Summary (Appendix 3).

3.29 The Study recommends that to move forward on a finance strategy, further cooperative work and research has to be facilitated and explored with key local and national stakeholders. A further proposal of a shared Cultural Fund has been mooted in the Study. This would be a combined financing option open to all venues which could answer challenges in the medium to long term, and therefore would require further consultation and research.

3.30 Following further consultation and discussions with stakeholders, a report outlining how this co-operative work could be delivered will be presented to the Committee in due course. 4 Financial Implications

4.1 The Study was financed by the Corporate Services Department and Scottish Enterprise, and was delivered on budget.

4.2 This report recommends further work to explore some of the specific findings of the Study. This work can be contained within the Corporate Services revenue budget.

4.3 In the medium to longer term, it is clear that a financial strategy will need to be developed by the Council in concert with a range of partners and stakeholders, to take account of the very large sums which the Study recommends should be invested in the city’s cultural infrastructure. Those sums, as noted in paragraph 3.24, are of a scale that neither the Council nor any other single partner could make available. Partners will need to examine the full range of possible sources of funding. Examples could include prudential borrowing, business improvement districts, tax increment financing, the private sector, Lottery agency resources and national funding. Clearly, this will be exceptionally challenging, especially in the current economic context. That said, benchmarked cities such as Manchester, Newcastle, Baltimore, Vancouver and Montreal are continuing their substantial investment commitments in their cultural infrastructure given the clear economic and investment benefits. Edinburgh has a case to make both for its own existing and potential citizens and as the cultural gateway to the rest of the country.

5 Conclusions

5.1 The Study has proven and established the need for the following:

0 venue quality and essential investment;

0 increase in product and marketing;

0 solutions for some specific venue requirements;

0 a strong investment toolkit;

0 major investment over the next two decades, which will require a robust financing strategy to be progressed.

5.2 The Study concludes that Edinburgh is the standard bearer for culture in the UK around the world. The Council, together with a range of citywide partners, now has the opportunity to re-shape capital proposals to deliver strategic city needs, while not neglecting the needs of individual projects, over the short, medium and long term. The suite of parallel actions described in this report should ultimately deliver innovative solutions for Edinburgh to ensure its continued position at the pinnacle of cultural provision.

6 Recommendations

6.1 It is recommended that the Committee: welcomes the ambitious vision and findings of the Edinburgh City Cultural Venues Study, in particular, approves the finding that the quality of the city’s venues must be maintained and improved through essential investment; approves the Council’s use of the investment toolkit (detailed in Appendix 3) to assess and prioritise cultural venue capital proposals; instructs the Director of Corporate Services to investigate partner opportunities with the private sector to deliver a venue which has a hybrid design and the technical ability to host audiences of up to 6,000 (as described in paragraph 3.14 above), and to report on progress in due course; accepts the Study recommendation that the Council should explore management options for the city’s cultural venues to establish whether or not there might be genuine opportunities for improved efficiency and operational savings and requests the Director of Corporate Services to bring forward a detailed proposal and timescale for this work; notes that to stay ahead of the competition and meet investment requirements, solutions for the short (5 years), medium (10-1 5 years) and long term (15 to 20 years) will need to be developed through cooperative work and research with key local and national stakeholders and notes that a report outlining how this cooperative work will begin will be brought to Committee in due course. Appendices 1 Study Brief 2 Company Background - pmp 3 City Cultural Venues Study Executive Summary 4 List of consultees

Contactltel Lynne Halfpenny, Head of Culture and Sport, tel 529 7305 lynne. [email protected]

Lindsay A Robertson, Arts Manager, tel529 671 9 lindsay.robertson@edinburg h.qov.uk

Wards affected City wide

Sing le Outcome Su pPO rt s Na t ion al 0ut co mes: Agreement 1 “We live in a Scotland that is the most attractive place for doing business in Europe”;

10 “We live in well-designed, sustainable places where we are able to access the amenities and services we need”; and

12 “We value and enjoy our built and natural environment and protect it and enhance it for future generations”.

Background Report entitled “Thundering Hooves - Maintaining the Global Papers Competitive Edge of Edinburgh’s Festivals” to Council on 29 June 2006 Appendix 1

CITY CULTURAL VENUES STUDY

INTRODUCTION

The City of Edinburgh Council and Scottish Enterprise Edinburgh and Lothian wish to commission a Study which will establish a comprehensive strategic overview of established and potential cultural venue provision within the City of Edinburgh. This will map existing venue provision, proposed developments and identify any gaps along with any investment requirements needed to deliver a cohesive cultural infrastructure which best serves Edinburgh and Scotland’s needs into the 2IStcentury.

The Study will include city, nationally and privately owned and run entities. The Study’s outcomes will provide a context for the City Council to appropriately lead on alignment of venue provision and investment.

With the establishment of the new Culture and Sport Division within the City of Edinburgh Council, and the refurbishment of such venues as the , there is now a vital need to address this strategic overview of the City’s current venues provision and establish future needs and planning timescales in the short, medium and long term. The completed work will provide a prioritised list for future investment purposes.

CONTEXT

References for the consultation Brief should encompass both current provision and future planning around performing arts and events-related tourism. Existing reference material such as the Council’s Cultural Policy-related strategies, economic impact studies, and so on, should offer a robust starting point establishing the strategic position of existing venue provision and the potential gaps that require to be addressed.

Reference materials include:

Thundering Hooves Report The City’s (draft) Moving Image Strategy The Mid-scale Music Venue Review The Theatre Strategy Theatre Feasibility Study Edinburgh Events Strategy Waterfront Major Events Study (SEEL) Edinburgh Tourism -A Framework for Growth City Centre Development Strategy Royal Highland Agricultural Society of Scotland Relocation Feasibility Study Leith Docks Development Framework Waterfront Destination Plan Scenarios (Draft) National Facilities

The venues should be for the purposes of performance, cultural activity and participation. A lower capacity limit of 200 has been set. Examples of the Edinburgh venues to be included in this Study are theatres, museums, conference centres and galleries (with a capacity of above 200). The Study must include ; Usher Hall; Assembly Rooms; ; Ross Bandstand; ; King’s Theatre; Traverse; Queens Hall; Festival Theatre; National Museum; City of Edinburgh Council Museums; National Galleries; proposed Media Centre initiative (Moving Image Strategy).

In addition, the study should consider other venues which are not primarily designed for, but are capable of hosting cultural events, such as sports stadiums, the Edinburgh International Conference Centre, the Royal Highland Showground and the Castle Esplanade.

The consultation should use as a starting point the recently completed venues facilities audit The Audit covered venues across both Edinburgh and the Lothians.

OBJECTIVES

a) cultural venue overview

b) set of recommendations on the way forward and prioritised investment requirements

c) provide evidence to plan resources in the short medium and long term

SCOPE OF STUDY

The consultants will be required to undertake the following:

1. A full assessment of existing cultural venue provision in the city, including the following for each:

average audience and/or participation figures across the year - (with local and visitor breakdown where possible), and percentage of capacity

0 typical programme of activity - current and planned physical fabric - investment and maintenance requirements / spend patterns

0 range and nature of enquiries for potential venue use which cannot be accommodated

2. A full assessment of proposed investment in cultural venues or venues capable of hosting cultural events, including the following for each:

primary purpose potential for hosting cultural events capacity 0 development timescale, funding requirements etc

3. An analysis of the future demand for cultural venue provision in the city. It is anticipated that the consultants will:

undertake an extensive consultation with a range of cultural providers in the city, nationally and internationally identify events and activities not currently placed in Edinburgh due to the lack of appropriate venue provision cross reference these findings with the strategic objectives identified in the studies above undertake a desk study of venue investment currently underway or proposed in competitor cities and ensuring that proposals do not inappropriately duplicate or displace wider Scottish-based initiatives

4. Where gaps are identified, the consultants should make recommendations as to:

e The infrastructure requirements to address the gap; Potential capital and revenue costs; Funding mechanisms/opportunities; Fit with city strategies; Economic impact.

5. Create a robust, transparent methodology for prioritisation of investment in cultural venues over the next 20 years and draw up a prioritised investment plan. 6. Prepare a final report drawing together all of the above.

7. Create and deliver a communication strategy to secure general buy-in to the investment plan from the broad constituencies of interest

0 the cultural community,

0 the City’s Citizens Panel

0 the Edinburgh Business Assembly

0 City of Edinburgh Council 0 Scottish Enterprise Edinburgh and Lothian Appendix 2

Company background - PMP

PMP was established in 1996, and is acknowledged as the UK’s leading consultancy specialising in strategy, finance and delivery of culture, sport and leisure. They employ around 50 professional staff in two main offices in Manchester and London.

They regularly work with local authorities, schools, County Sport Partnerships and local service providers on a range of projects, including strategic planning, facility development, sports development and monitoring and evaluation. They also run ‘Quest’ the UK’s Quality Scheme for sport and leisure, which includes both Facility Management and Sports Development strands. EXECUTIVE SUMMARY Appendix 3

Introduction

If festivals and events are the City’s lifeblood, then the City’s cultural venues are its heart. From the Castle Esplanade to the Usher Hall, Charlotte Square to the - Edinburgh’s cultural venues are diverse, exciting, and a key part of the City’s offer to its residents and visitors. ii) When the City invites you to be entertained the cultural venues become its living room - and its guests need to feel welcome, comfortable, and keen to return. Edinburgh’s venues reflect the essence of the City itself - they indicate its cultural, social and economic health - and it is vital they are in good order. iii) Few world cities can match the architectural presence of Edinburgh, and most envy the extraordinarily convenient central location of its principal cultural venues that allow Edinburgh’s audiences easy exploration of the City. iv) or the Playhouse, National Museum or Festival Theatre -the City already enjoys a variety of exceptional cultural spaces. The responsibility then becomes ensuring Edinburgh maintains the range and quality of spaces necessary to accommodate the evolving needs of contemporary audiences. v) That is the starting point for this study - to ensure Edinburgh excels - by examining the future needs of its residents and visitors, and planning carefully for their provision.

Background vi) PMP were commissioned in October 2007 by the City of Edinburgh Council (CEC) and Scottish Enterprise, Edinburgh and Lothian (SEEL) to undertake a review of cultural venue provision within the City of Edinburgh, with key objectives to:

provide an overview of existing cultural venue provision

make recommendations on the future provision required and investment priorities (via a staged assessment process)

provide evidence to plan resources in the short, medium and long term.

Scope of the study and methodology vii) The study brief set out clear guidelines on the scope of the study which was to include an assessment of all City, nationally and privately owned and run venues which are ‘for the purpose of performance, cultural activity and participation’ with a minimum seating capacity of 200, whilst also considering ‘other venues which are not primarily designed for, but are capable of hosting cultural events, such as sports stadiums, the Edinburgh International Conference Centre, the Royal Highland Showground and the Castle Esplanade’. viii) Therefore, the study has focused specifically on venues which meet the criteria set out above, although the study has been mindful of those outside the criteria and how they contribute towards the ‘creative economy’ and continued development of the City.

City Cultural Venues Study - Final Report Page i EXECUTIVE SUMMARY Appendix 3

ix) To ensure that the study has been based upon a sound understanding of the strategic context, a detailed desk research exercise has been undertaken, to review key existing strategies, policy documents and studies such as the Thundering Hooves report, Moving Image Strategy, Mid-scale Music Venue Review, Theatre Strategy, Corporate Plan and City Centre Development Strategy. These studies involved extensive research and analysis and provide clear strategic guidance and evidence to inform this study. Therefore:

any recommendations derived from this study must contribute towards the overarching aims and ambitions for the City and ensure that key strengths previously identified are preserved and enhanced where possible

this study has taken account of previous findingslconclusions relating to the current level of cultural provision and perceived gaps and ensured that these findings have been considered in relation to the market assessment work

this study has also taken account of previous findingslconclusions relating to non-facility based issues (such as innovative programming, effective marketing and increased cooperation) which need to be addressed to improve the overall cultural offer for Edinburgh

this study has taken into account key previous recommendations from the documents named above, in particular:

- the need for increased investment if Edinburgh is to maintain its current position

- that any new facilities demonstrate that the programme will attract new audiences

- ensuring that recommendations are made that are relevant for both residents and visitors

- ensuring that decisions regarding the City’s infrastructure take into account the needs of existing events.

Comparator Cities x) The desk and strategic research work also included a review of a range of comparator cities, both in the UK and further afield (including Manchester, Newcastle, Liverpool, Glasgow, Baltimore, Montreal and Vancouver) where the level of investment in cultural infrastructure has been significant in recent years. This research highlights how demand for cultural events and facilities can, in some cases, be stimulated by new provision. Intelligent investment in new cultural facilities, particularly iconic facilities, in cities such as Manchester and Bilbao has helped further boost tourism due to the appeal of museums, art galleries, concert halls, conference centres and arenas.

xi) A total of 73 venues were identified in Edinburgh that are able to cater for cultural provision with a minimum capacity of 200. Current provision includes a diverse range of facilities both in terms of seating capacity and programming capabilityluse.

City Cultural Venues Study - Final Report Page ii EXECUTIVE SUMMARY Appendix 3

Table 1 and the paragraphs which follow summarise current provision for major event based art forms.

Table I- Overview of cultural venue provision

Summary of current provision

Drama/m usicals xi i) There are a wide range of venues suitable for hosting drama/musicals within Edinburgh including:

0 relatively small venues, such as the Traverse, the Church Hill Theatre and St. Brides which can seat audiences up to circa 350

0 mid-sized theatres such as the Royal Lyceym (637)

0 large-scale theatres, such as the King's Theatre (1,336), the Festival Theatre (1,594) and the (3,056). xiii) Given the amount and range of provision identified in the audit, based purely on supply-side factors, there currently appears to be more than adequate provision for drama/musicals in terms of the number of facilities provided and varied seating capacity. However, the site visits (and consultation feedback) highlight the need for improvements to the quality of existing venues to ensure that they meet customer expectations now and in the future.

Pop/Rock xiv) There are a range of venues which host rock/pop concerts including:

0 clubs such as Caberet Voltaire and the Liquid Rooms at the smaller-end of the scale with seated capacity of circa 200 (although events are usually 'standing only')

0 mid-sized venues, such as The Hub (400), the Bongo Club (400) and Jam House (600)

0 the Corn Exchange (1,500) which hosts popular concerts on a monthly basis

0 large theatres and concert halls, whose programmes do include pop/rock concerts such as Usher Hall (2,100) and the Edinburgh Playhouse (3,056)

0 sporting venues and outdoor spaces, such as (67,500) and Esplanade (8,600).

City Cultural Venues Study - Final Report Page iii EXECUTIVE SUMMARY Appendix 3 xv) However, none of the large-scale venues (particularly the sports stadia and outdoor spaces) have been purpose built or adapted to specifically host rock/pop concerts and, as such, can prove expensive and time consuming to adapt and as a result they tend to only host events on a fairly infrequent basis. xvi) Based on the current supply, there is a gap in terms of a venue which can regularly cater for medium to large-scale (4,000+) rock/pop concerts.

Classical music xvii) The main venues which provide classical music concerts on a regular basis are the Usher Hall (2,100) and the Queen’s Hall (900). xviii) There is also smaller scale concert provision at the university, via (300), and a wide range of other venues, though not purpose built which also provide classical music concerts, including:

0 seven church venues, from St. Mark’s Church with a seated capacity of 200 up to St. Giles Cathedral with capacity for 750 seats

0 the Assembly Rooms (750) and McEwen Hall (1,100). xix) As such, the current stock of facilities appear to offer a wide range of venues capable of hosting classical music concerts. However, there are no suitable mid-scale music venues which are regularly available for classical music, (previous concerts of this scale have been staged using the ground floor seating at the Usher Hall - but this option is deemed less than perfect, due to the large number of empty seats remaining). In addition, there are quality issues at the Queen’s Hall which need to be addressed - mainly in relation to the ancillary provision.

Opera

There is only one venue which regularly hosts opera in the City, which is the Festival Theatre (1,594); although the Edinburgh Playhouse (3,056) occasionally hosts opera and there are other venues, including the Assembly Rooms (750), the Church Hill Theatre (353) and the Hub (400) which will stage operatic recitals at certain times. xxi) The quality of facilities provided, particularly at the Festival Theatre, is very good and given the specialist nature of this art form, this level of provision is considered to be adequate.

Dance xxii) A range of performing arts and multi-purpose venues provide for dance, including:

0 smaller venues, such as the Traverse (260 seated for dance), St. Brides (320), the Church Hill Theatre (353) and the Hub (400)

0 medium sized venues, such as George Square Theatre (482), the Drill Hall (500), Stewart’s Melville College (500), the Lyceum (637) and the Assembly Rooms (750)

0 larger venues, such as the Festivals Theatre (1,594) and during the Festivals, at the Playhouse (3,056).

City Cultural Venues Study - Final Report Page iv EXECUTIVE SUMMARY Appendix 3 xxiii) There does not appear to be any major gaps in the current provision for dance - although there is no venue regularly available for dance with a capacity of circa 1,000.

Comedy xxiv) There is only one comedy specific venue in Edinburgh with seating capacity in the study range; Jongleurs (270). However, there are a range of multi-purpose and performing arts venues with differing capacity sizes, which stage comedy (particularly during the Festivals period), including:

0 a range of venues operated by the university, such as Teviot (220), (300), Pollock Halls (350) and the Assembly Hall (1,250)

0 the Assembly Rooms (750) and on occasions, the Festivals Theatre (1,594) and the Playhouse (3,056). xxv) Given this combined provision, there would appear to be a wide range of existing and potential venues to host comedy - although acoustics may be a challenge at some sites.

Cinema xxvi) There are eight cinema venues across the City with seating capacity over 200, ranging from the Cameo Cinema (253) up to Cineworld Fountain Park (530). xxvii) In terms of event provision, the main gap currently is in the lack of a large cinema space, capable of hosting red carpet premieres, where seating capacity required is usually between 700 - 1,000 seats. However, it should be noted, that although not purpose built for cinema, such an event has/could be hosted at the Festival Theatre, Edinburgh International Conference Centre or the Usher Hall - though naturally availability of these venues will vary depending on the time of year.

Geographic spread of venues xxviii) In terms of overall provision and the location of current venues, it is apparent that many of the existing cultural venues are clustered around three main areas:

0 , in and around 0 Lothian Road

0 Castle area. xxix) Although there are a number of other venues distributed at various locations across the City, there is a clear gap within the north of the City, as there are few cultural venues with a capacity of 200+ in the Pilton/Granton area, and minimal provision in the WaterfrontlNorth Leith area.

xxx) Consultation was undertaken with a wide range of key local and national stakeholders including representatives from City of Edinburgh Council (CEC), Scottish Enterprise, Edinburgh and Lothian (SEEL), the Festivals Forum, the Scottish Arts Council (SAC), Historic Scotland, VisitScotland, Edinburgh University, representatives from a wide range of cultural venues across the City and commercial sector representatives; such as Forth Ports and Waterfront Edinburgh Limited. The key findings from the consultation process are summarised below.

City Cultural Venues Study - Final Report Page v EXECUTIVE SUMMARY Appendix 3

Vision xxxi) Discussion with consultees confirmed the following aspirations/visions for the City:

0 to be recognised worldwide as a high quality ‘must see’ contemporary European capital City

0 to provide a year-round programme of cultural festivals and events, which attracts increasing numbers of visitors to the City and is supported by high quality levels of service and a customer focused infrastructure

0 to be a creative and connected City, promoting the wellbeing of both people and place. xxxii) Therefore, it is important that any future investment in cultural venues prioritises developments which will contribute towards these aspirations.

Key strengths and weaknesses of the existing cultural provision xxxiii) The main strengths and weaknesses of existing cultural venue provision in Edinburgh that were highlighted via the consultation process are summarised in Table 2.

Table 2 - Consultees perceptions of key strengths and weaknesses

0 wide range and diversity of existing lack of investment in existing venues - provision current quality of venues does not reflect City’s aspirations 0 wealth of classical architecture and historical venues within the city centre 0 underutilisation of existing venues outside peak periods 0 City’s strong reputation for cultural venues, events and Festivals difficulties of securing funding for capital improvements 0 compact location of the city centre perceived lack of support for venues outside vibrant, creative community city centre

0 lack of suitable venue to host large rock/pop concerts.

Gaps and priorities xxxiv) The views of consultees in relation to existing gaps in the market and priorities for investment varied:

0 many consultees saw the key priorities being around upgrading the quality and increasing the ‘product’ through existing venues as opposed to building new venues given the diverse range of existing provision

e others felt that for Edinburgh to meet its aspirations as a global ‘must see’ City, new cultural provision is required to meet existing gaps, stimulate demand, attract additional visitors and new residents. xxxv) The main investment priorities identified by consultees are summarised in Table 3 below.

City Cultural Venues Study - Final Report Page vi EXECUTIVE SUMMARY Appendix 3

Table 3 - Investment priorities identified by consultees

Priorities for existing provision Priorities for additional provision

0 Assembly Rooms 0 unique facility to host rocklpop

0 King’s Theatre 0 iconic multi-purpose venue at the Waterfront

0 Leith Theatre 0 mid-sized concert venue

0 Queen’s Hall 0 medium sized theatre

0 Ross Bandstand 0 red carpet film venue

0 Tattoo VB priorities noted above were all deemed to be important and as such the order listing does not signify an order of priority)

Non-facility based issues xxxvi) In addition, consultees raised a range of non-facility based issues that they felt must also be addressed if the overall ‘cultural offer’ in Edinburgh is to be improved.

Leadership xxxvii) There is a perceived lack of clarity regarding whose primary responsibility the cultural infrastructure of Edinburgh is and that this has often translated into an apparent inertia and stressed the need for a champion to drive forward future developments.

Cultural ecology of the City xxxviii) There is a need to view any future developments as part of a larger ‘cultural ecology’ of the City in which the built infrastructure is an important, but by no means isolated part. In particular, consultees stressed that:

any cultural venue is diminished without a sufficient flow of a good quality product, and that investment is required into cultural producers as well as into the venues themselves

although outside the scope of this study, many of the smaller (sub 200) venues play an extremely important part in the City’s cultural ecology, often acting as ‘the training ground for directors, performers, administrators and technical staff and as such have a direct impact on the larger venues.

Potential for increased coordination xxxix) Although key stakeholders across the cultural sector have made strides towards a more co-ordinated approach (as illustrated by the development of the Festivals Edinburgh), consultees highlighted that there is still much that can be done. In particular there are opportunities for:

improved and coordinated marketing

0 exploring the opportunities for combined/alternative management arrangements.

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XI 1 An insight into potential projected demand has been developed through analysing the interaction between catchment, competition and product. These three factors are intrinsically linked and inter-dependent in many cases. Arts and cultural venues effectively compete with one another for audiences and product. Competition also exists at several levels - including local, regional and national. xI i) A wide range of factors contribute to the attendance levels of specific art forms, events and performances. Practical considerations including cost, venue quality and location, accessibility and timing have an influence on an individual’s propensity to attend events. Preferences are shaped by a complex network of factors linked to the social, economic and cultural context in which a person or a population lives. xlii) In addition to this, the nature of the Festival season is such that Edinburgh’s cultural and arts demand is unique. Demand for events outside the Festival season is substantially lower than during the season. During the Festival there are significant requirements for performance spaces, to a far greater extent than outside of the season, impacting on the sustainability of these spaces for the remaining months of the year. xliii) The Edinburgh catchment has a number of characteristics illustrative of demand for the arts. Specifically, the 30-minute catchment contains:

0 a population projected to grow at a rate faster than the national average

0 substantially above national average percentage of people in MOSAIC groups A and E - ie those with the highest propensity to attend arts/cultural events

0 significantly above national average percentage of people in the ABCI social group - again displaying the highest propensity to attend

0 age profile conducive to event attendance, with a large number of students and a relatively young population

0 residents with identified demand for plays, opera, ballet, contemporary dance, classical music, jazz, art gallerieslart exhibitions and pop/rock concerts over 15% higher in all instances than the national average

0 residents with a substantially higher than average likelihood of attending multiple cultural events in a year. This is most pronounced for plays. xI iv) Each of these factors suggests substantial demand for facilities, with the highest number of potential attendees indicated for plays, art galleries/exhibitions and pop/rock concerts. xlv) However, the actual numbers of residents within the drivetime catchments are not particularly substantial despite the high propensity to attend. The total size of the catchment is smaller than that of other major UK cities - containing circa 460,000 people within 30 minutes drivetime of the City. (Approximate 30 minute drivetime catchments for other major UK cities is as follows - Leeds 1.2m, Newcastle 890,000, Nottingham 730,000, Liverpool 890,000 and Glasgow 1.2m).

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xlvi) The supply and demand assessment has highlighted that Edinburgh has substantial provision for a number of art forms. Given the seasonal demand generated through the Festivals season these venues are needed to sustain the appeal of the event and the City’s competitive advantage in this regard. xlvii) However, outside of August, some of the current provision could be seen to effectively constitute an over-supply, particularly relative to the levels of provision in other UK cities. This is especially applicable to the City’s theatres. Consultation and performance data suggests that a number of the City’s venues are unable to attract a large number of event days outside of the Festivals season. In light of this, and to ensure that Edinburgh’s ‘culture of culture’ is maintained (in an economically prudent fashion), the Council in partnership with others, may wish to investigate a series of potential alternative approaches for these venues, including:

0 improving the quality of existing provision to help attract repeat visits and new customers

0 aggressively seeking to generate/produce more product to fill the venues

0 developing the flexibility of the City’s venues to maximise the number and type of events that can be accommodated, thereby increasing viability of those venues retained

0 mothballing underused venues outside of the Festivals period

0 increased liaison with Glasgow to ensure that the two cities better complement one another’s offer, rather than compete - for example via joint City programming.

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Table 4 - Summary key findings from demand and supply assessment

there is currently a large number of theatres in the City, across a range of sizes. This current level of provision is essential to the effectiveness of the Festivals, but outside the Festivals season venues are often under-utilised there are currently no gaps/requirements for additional theatre venues in Edinburgh

there are however, gaps in the ‘quality of provision’ and ‘product’ - key venues have a number of OperationaVdesign shortcomings and site visits have illustrated the need for investment in the refreshment and internal re-design of a number of venues.

the quality of existing venues needs to be improved to meet customer expectations and match the City’s aspirations of being ‘must see’ and ‘world class’. key venues where refurbishment needs have been highlighted include the King’s Theatre, Ross Bandstand, Church Hill Theatre, Assembly Rooms and Leith Theatre if all venues are to remain, some options which should be considered include: - working with the City’s venues exploring opportunities to produce more work between them to contribute to the events calendar - establishing a greater relationship between venues across Scottish cities to stimulate the development and availability/visibility and in turn increase the opportunities for repeat visits.

demand and supply suggests that there is currently a gap for a medium to large-scale (4,000+) venue to host rock/pop concerts on a regular basis consultation with UK arena operators has suggested that there is limited appetite to investigate Edinburgh as a large-scale (ie circa 10,000+) arena venue, in a purely commercial fashion. There is some interest from operators to take on a management contract of an arena style venue in Edinburgh, though under this scenario a subsidy would be likely to be required given the strong market competition and substantial capital costs required, it is unlikely that an arena in Edinburgh would be commercially sustainable. An arena may contribute to Edinburgh’s appeal as a place to live and encourage event tourists and the associated direct and indirect economic impact. However, it would be likely to do so at an ongoing public subsidy, as well as a significant upfront capital investment soft market testing has revealed initial commercial interest in the development of a medium scale venue for rock/ pop (4,000 - 6,000) in Edinburgh, potentially with the flexibility to also host other events such as conferences.

based on the identified gap, options which should be considered include investigating potential partnership opportunities with the private sector to deliver a medium scale venue with an entertainment focus. Key points to note: - the quality of interior design and flexibility will be key to securing the optimum attendee experience and securing the support of artists/promoters, who will play a key role in determining the supply of events - a medium scale venue would incur a lower caPital cost than would an arena and. as a

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smaller venue, it would be able to draw upon a far larger product market than an arena and appeal to the large student/young people population in the City and beyond - Edinburgh’s 30-minute catchment, though small, is positive in demographic terms as far as indicators of attendance at pop music events is concerned - if the building were designed with the technical ability to reduce capacity to circa 1,000 (ie multi-use/hybrid venue), there would also be the potential for a medium scale venue to play a role in complementing existing meeting and conference provision in the City and increasing Edinburgh’s appeal to this key market

0 alternative options to consider, in relation to meeting the identified demand for additional provision for large scale rock/pop events include: - the inclusion of a 10,000 seat end stage within the re-development plans at - developing a partnership with a private sector partner to re-develop an existing building for a mid-sized rock/pop concert use, such as King’s Theatre or Leith Theatre - facilitating the RHSG (in planning and development terms), should master planning confirm the deliverability of a 10,000 seat arena within their re-location plans; given the wider economic benefits.

.- ..... I ...... -. ‘CLASSIC AL ^Musr c

.. ~ I- ...... __ - .- _ _ ..... I_...-.. GapslConclusions .... the venues audit and stakeholder consultation feedback has highlighted that there are no suitable venues which are regularly available for classical music with capacity of between 1,000 - 2,000 seats

0 demand assessment suggests that there is insufficient demand to support a new commercially sustainable classical music venue, particularly given the high capital costs associated with the delivery of a facility specific to classical music

0 there are also gaps in terms of ‘quality provision’ - although these are being addressed at the Usher Hall, quality is still an issue at the Queen’s Hall

0 the Queen’s Hall, which is owned and managed by a charitable trust, is widely acknowledged to provide an important role within the cultural infrastructure of Edinburgh, and as such its refurbishment and re-development plans should be given careful consideration although the demand assessment indicates that a new classical music venue would be unlikely to be commercially sustainable, the need for a mid-scale concert venue was considered a priority for key stakeholders and would contribute towards Edinburgh’s aspirations to be ‘world class’. As such, the Council may wish to consider the feasibility of providing a new classical concert venue. However, the likely capital and revenue costs of such a venue may mean that it ultimately proves unviable.

0 an alternative which may prove more viable would be the development of a classical music venue within a ‘hybrid’ or multi-use venue.

0 good quality provision for opera currently at the Festival Theatre

0 insufficient demand to suggest the need for a commercially sustainable opera house ~- ____. - ...... Options to consider

_-_-_-.-______.I ...... ~ ...... no specific action required

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DANCE GapslConclusions

0 the findings of the venues audit and stakeholder consultation highlight that there are no venues regularly available for dance with capacity of circa 1,000

0 demand assessment however, indicates that there is insufficient demand to deliver a new commercially sustainable dance facility

0 no specific action required. However, should proposals for a new flexiblelhybrid venue progress to meet identified demand in other areas, consideration should be given to the inclusion of appropriate flooring and ancillary facilities for dance. COMEDY GapslConclusions

0 the catchment analysis, combined with the strength of the Fringe with regard to comedy, suggests that there may be scope to deliver an additional successful comedy venue in the City Options to consider

0 whilst the Council and SEEL would not invest in and assume the risk associated with securing a Comedy Store franchise for the City, there may be scope for input to facilitate the delivery of such a venue. MOVING IMAGE VENUES GapslConclusions

0 there is currently no cinema space large enough to host red carpet film premieres, where seating required is usually between 700 - 1,000 seats

0 perceived need for an enhanced replacement venue for the Filmhouse -with a focus on independent art house films and the ability to provide an administrative home for the EIFF. Options to consider

0 consider development of either a purpose built red carpet film venue or the use of the Festival Theatre or ElCC to host red carpet film premieres

0 consider development of a purpose built moving image centre. xlviii) Although the focus of this study has been on large scale cultural venues for event use, stakeholder consultation also raised the need for community arts provision. The venues audit also highlighted that there is currently minimal cultural provision suitable for hosting events in the north of the City, meaning that consideration should be given to refurbishment of Leith Theatre and the continuing refurbishment of the Drill Hall.

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xlix) Table 5 below provides details of the key projects which have been highlighted through the research and consultation work or are recognised by PMP as potentially filling gaps in provision.

Table 5 - Summary cultural venue projects - ___- - - . Summary investment project Approx. Cost -. .. ____ - -~ - - - -- ._ Assembly Rooms 0 current development plans focus on Circa f 12m refurbishment of the venue, utilizing the ground floor for commercial retail outlets and the upgrade of facilities to include ‘fine dining and increased events programme

Church Hill Theatre 0 current development plans focus on To be confirmed improving the backstage facilities

Drill Hall (Out of 0 phase 3 internal refurbishment Circa f750,OOO for the Blue) programme to enhance the venue for phase 3 community arts, incorporating artists studios, workshop spaces and a sculpture garden

King’s Theatre 0 current development plans include a Circa f6m - f19.7m range of options, from replacement of existing systems to meet statutory requirements where necessary, to major improvements to the front and back of house to improve overall quality of provision

Leith Theatre 0 development plans to refurbish and Circa f8.5m upgrade existing facilities and review usage Meadowbank council are considering re-provision of Circa f25m sports facilities -this provides an opportunity to link with identified cultural requirements eg potential to include end stage dual use seatingktage as per Toyota Park stadium in Chicago

Queen’s Hall 0 current development plans focus on Circa f 1Om an overhaul of ancillary spaces and an update of the performance space, including a three storey extension at the back of the building that will include a new 100 capacity flexible performance space with retractable seating on the top floor, an upgrade of the existing pews in the main auditorium, new cafe bars, toilets and corporate hospitality facilities Ross Bandstand proposals include provision of a new Circa f 15m multi-function performance space, a new bridge over the railway tracks, so that the bandstand can be serviced from the back of stage, new stair and lift access from Princes Street, a new,

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__ - Summary investment project Approx. Cost ~- . stepped, stone auditorium with core capacity of 5,000 with an additional capacity of 5,000 provided by temporary seating and back of house facilities and toilets concealed below the stage and adjacent grass bankinc

0 re-location of existing showground Circa f275m in total - Showground facilities onto adjacent site, to f50m for Arena accommodate expansion of Edinburg airport. New plans include aspiration to develop a 10,000 seat indoor areni j Royal Museum development project (currently in Circa f46.4m progress) to enhance and extend the current facilities to provide a larger gallery, improved access to all floors and galleries, more public space, including an enhanced shop, new cafes and a new floor at street level TattoolCastle at purchase of new seating stands Circa €1 5m Esplanade (capacity 8,600), enhanced quality, inclusion of VIP boxes with shorter period required for set up and take down

Usher Hall 0 development plans (currently in Phase II f20m (plus progress) focus on improving access further f3m for phase and backstage facilities - including Ill works to landscape construction of a new wing housing arts quarter) public areas, space for the administration team and new hospitality areas, the installation of lift and stairs and a new workshop area with equipment to support education programmes Circa f20m (excluding rMid-sized conct 0 mid-scale music venue (1,200) venue suitable for hosting classical music any land purchase concerts and new home for the SCO costs) (to include main auditorium, rehearsa space and education space

Multi-use venue 0 iconic multi-use/hybrid venue that Circa f30m (excluding The Waterfront would include flexible spaces, with any land purchase capacity of between 1,200 - 6,000 for costs) mixed use, including conference, banqueting, exhibitions and events, classical and rock/pop concerts and dance

0 located at Edinburgh Waterfront

Moving image 0 initiative led ElFF (Edinburgh Circa f20m (excluding venue International Film Festival) to create any land purchase an enhanced replacement venue for costs) the Filmhouse. Various sites considered but it is insisted that the site will be in the city centre.

0 5-6 screen cinema plus administrative home for ElFF

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. .- .. . . ~ I Venue j Summary investment project ppprox.Cost _-.. . -- __ -_ - _- - - ._ Red carpet film 0 initiative led by the ElFF to develop a Circa f20m (excluding venue new 700-1,000 seat cinema any land purchase aud itori um costs)

0 a stand-alone building of significant architectural desig n initial plans propose an ‘obelisk’ in Sheraton Square

Investment priorities

lnvesfmen t matrix

1) To assess the value of the individual projects set out above (and any future projects) in terms of how they contribute towards the development of Edinburgh’s cultural offer an investment matrix has been developed. li) The investment matrix will be based on a two stage process. The first stage will be a strategic assessment and the second stage will relate to deliverability and financial assessment - with the process to be followed illustrated in Figure 1.1 below.

Figure 1.1 - Investment Matrix Process

Project A 4 1 Scheme I

1 - L-___r__l Assessed and scored against Stage 1 criteria to determine strategic value:

I

Stage 2: Financial Assessment

1T Assessed against Stage 2 criteria to determine deliverability and financial affordability

Deemed priority for investment amended and re-assessed

Scheme does not progress any further I

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Stage one - strategic assessment hi) This study has concentrated on the stage one strategic assessment, which would rank and validate projects for consideration for progressing into the second stage. liii) The stage one strategic assessment included in the matrix reflects the agreed vision statements, ambitions and market need as shown in Table 6. Each assessment criteria has been assigned a maximum score based on how important each factor is deemed with the total score available being 100.

Table 6 - Investment matrix stage 1 criteria scoring

______--____._.. . Maximum score . . __ Must see City: Festivals need 10 international profile 10 iconic/historic venue 10 unique venue 10 tourism impact 10 Year round provision: year round programme/usage 10 meeting identified demand 10 maximising non Festivals period use 10 Creative and connected City cultural impact community impact supporting the Single Outcome Agreement direct economic impact liv) A clear scoring criteria was agreed, which ranged from a score of 0 for projects which were felt to provide ‘no’ contribution to the specific criteria to a score of 9-10 for projects which were felt to provide an ‘excellent’ contribution to the criteria. The scores received for individual projects are shown in Table 7 overleaf.

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Table 7 - Investment matrix stage one scores for individual projects

Must see City Festival need 10 7 4 10 4 1 10 6 1 2 10 10 4 7 4 7 International profile 5 2 2 5 3 1 5 7 5 9 9 a 4 4 a 2 Iconic/historic venue a 3 2 6 6 4 7 a 3 8 9 9 5 5 9 2 Unique venue 9 3 1 4 4 3 a a 5 7 9 8 3 6 6 2 Tourism impact 5 2 1 4 2 3 4 4 7 7 10 7 2 4 6 3

Subtotal 37 17 10 29 19 12 34 33 21 33 47 42 18 26 33 16

Year round provision Year round programme 4 7 6 3 4 7 8 2 4 2 1 5 4 9 7 1 Meeting identified demand 4 4 5 6 4 7 8 1 5 0 8 5 2 7 7 5 Maximising not- Festivals use 8 6 6 3 7 1 8 1 2 2 1 6 2 9 6 1

Subtotal 16 17 17 12 15 15 24 4 11 4 10 16 8 25 20 7

Creative and connected city Cultural impact 2 2 4 4 3 2 4 2 3 4 4 5 3 4 3 1 Community impact 3 2 4 3 4 2 3 3 3 3 1 1 1 3 4 2 Supporting Single Outcome Agreement 4 3 3 2 3 3 3 2 3 2 4 4 2 2 4 2

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Stage two - financial assessment

Iv) The second stage financial assessment would be based around key criteria including sustainability/robustness of business planning, likelihood/security of matched funding, deliverability and project risks.

Ivi) At this stage, without direct finances being available to support projects, the schemes have not been assessed against stage two criteria. It is proposed, that following the initial stage one assessments, subsequent refinements of projects and development of the overall financial strategy for the cultural venues, that the stage two financial assessment criteria are revisited as they will be dependent upon the final outcomes of the funding available.

Ivii) However, it is recommend the second stage of assessment focus on a range of factors key factors - as set out in Table 8 below

Iviii) Rather than score items out of IO, many of the items for the second stage assessment will require either a ‘yes / no’ response or financial values. Projects should only be pursued where the questions can all be answered ‘yes’ and the financial affordability of the scheme is confirmed (in revenue and capital terms).

Table 8 - Investment matrix stage two criteria

Deliverability:

0 is an agreed risk matrix and risk mitigation strategy in place?

0 has a procurement strategy been agreed, which complies with EU procurement legislation?

0 does the project team have the requisite skills to deliver the scale of project envisaged? If not, is a budget in place for procurement of external advice?

0 does the scheme have sufficient land for development and security of tenure over the investment period? has planning approval been obtained/a process in place to obtain?

0 has a business case been developed which confirms the preferred option is delivering ‘value for money’? This is particularly important for refurbishment projects. is there identified political and stakeholder support for the project?

0 is there identified market interest in delivering the project? (This may include design / construction interest and operating interest) Financial:

0 is there a detailed business plan in place, with agreed assumptions, that demonstrates long-term sustainability? if public subsidy is required, how is this to be provided?

0 can the scheme generate additional activity and audiences? (or will the scheme have an adverse impact on any other venues - i.e. will activity simply be displaced from other venues? If so, has this cost been factored in to wider public subsidy requirements?)

0 is there a detailed cost estimate in place for the capital works? has the capital funding been confirmed? What is {he status of any grant applications and associated conditions? are there any timescales associated with capital funding spend? If so, does this match with the project delivery plan?

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Criterla

1 0 what is the economic benefit projected for the project?

0 has the interim period during constructionlrefurbishment works been adequately considered and costed - i.e. have temporary relocations been agreed for programmed activitiedanchor tenants and has this cost been taken into account?

lix) There are essentially three tiers to the funding approach for cultural venues:

Tier 1: Piecemeal approach A project by project assessment, with funding sought for specific projects when required

0 Tier 2: Maintaining current momentum Identification of essential projects to meet key future requirements, for example the Assembly Rooms, EMT, Waterfront multi-use venue, Queen’s Hall, Usher Hall, alongside essential repairs and maintenance works. This is likely to require c.f 1OOm of investment

0 Tier 3: Major investment strategy Significant investment across the whole portfolio to meet current and future aspirations. This is potentially €200-250m of investment.

In seeking a comprehensive solution that can be used to achieve a tier 2 or tier 3 outcome, the widest view of funding sources for potential solutions has been taken. Financing solutions tend not to exist in isolation and consideration needs to be given to the following related factors:

the management of existing asset stock the promotion of individual venues and the City as a whole a range of current city-wide and Government initiatives other related assets such as museums, galleries and sports facilities that face similar financial and funding issues.

Ixi) From a grant perspective, major revenue grants are provided to the various Festivals (who of course use the cultural venues) but major investment is also made into arts centres, the Royal Lyceum Theatre, the Traverse Theatre and the Festival City Theatres Trust. Whilst there are a range of smaller projects and grants, the estimated revenue grant allocation for FY2009 is in the order of €4.8 million.

Management arrangements

Ixii) Across the City, venues are owned and/or managed by a range of different organisations. These include the Council, a number of not-for-profit trust organisations (including the Festivals City Theatre Trust, Queen’s Hall and the Royal Highland Show Ground) and the private sector (Edinburgh Playhouse - Live Nation). There is a strong argument to suggest that a mixed economy creates a thriving competitive environment in which City venues can operate. However, there are opportunities for the improvement of the management of these facilities and a more orchestrated approach may have greater benefits for the City as a whole.

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Ixiii) The key to a successful mix of management and ownership structure will be to marry the appropriate vehicle for the appropriate venue or combination of venues. This issue is highlighted in what is considered to be a lack of promotion of individual venues and on a city-wide basis. Data provided in this report indicates that the City needs to attract more acts and product to fill the venues. The supply and demand study and demographics in particular highlight a greater potential for audience attendance with improved product. This is a sensitive balance but one where improvements can be made.

Ixiv) Moving forward, careful consideration should be given to the scale and management of the not-for-profit trust sector. There is management duplication and potential competition where combined working may have improved outcomes in terms of venue management, product and financial management across the City.

Ixv) Research and consultation has highlighted that the private sector has a keen interest in acquiring additional facilities within the City and it is recommended that such approaches should be encouraged. With careful preparation of an output specification and a commercial approach to programming, it is likely that greater use of some venues can be achieved at reduced cost. In particular, provision of new popular music venues may be achieved through this route. Here, the linkage between product, act, promoters and venues is a strong way of encouraging greater usage of the existing venues within the City.

City-wide and Scottish Government initiatives

Ixvi) There are a range of current initiatives being developed both with the Scottish Government and within the City, led by the City Council and its partners. A number of these initiatives include new financial mechanisms that have the potential to create significant financial investment in the City as a whole. A number of these initiatives could be used in isolation or as part of a wider delivery model for the cultural venues estate. Individual initiatives include:

e Capital City Supplement

e Project Edinburgh

e Scottish Government / Scottish Enterprise funding

e Prudential Borrowing

e Business Improvement Districts

e Tax Increment Financing

Ixvii) From a City perspective, the cultural venues are a key feature in its future positioning as a must see City. This underlines its position in the tourism and business hierarchy within Europe and indeed the rest of the world. The cultural venues underpin the varying Edinburgh Festivals which are the main promotional and branding tool for the City.

The Cultural Fund

Ixviii) The Cultural Fund proposition seeks to provide long-term financing solutions for the cultural venues of Edinburgh. It could equally be expanded to include other sporting, museums, galleries and libraries provision across the City.

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Ixix) The proposition would be to create a Culfural Fund by grouping assets and finance to support long-term cultural venue provision. In the financing of venues the Fund would take an equity stake in venues thus providing assets to support the investment. Over the longer term, the scale of fund would create the opportunity to borrow monies against venues and income generation created.

Ixx) It is considered that there is the potential for this Fund to achieve a two-tier solution in the medium term, with the target of a three-tier solution in the longer-term. These monies could be managed independently and allocated through an independent board of trustees. The criteria for investment could be developed from those outlined in this report supporting the primary three aims of the City:

create a must see City

8 support the year round provision of facilities and services

8 support creative and connected City aspirations.

Ixxi) Such an imaginative and wide reaching proposition could be in keeping with the City’s aspirations both for its venues and a live/work environment where a cultural offering was instrumental to being an Edinburgh resident or Edinburgh based business. This will require further exploration.

The vision

Ixxii) The following key findings and recommendations must be considered if Edinburgh is to move towards it ambition of being:

Recommendations

Improving the quality of existing provision Ixxiii) It is essential that investment be made into improving the quality of existing venues to reflect the City’s aspirations of being ‘world class’.

Ixxiv) Table 8 - Investment priorities Stage 1

Venue High priority Medium priority LOW priority 1 Assembly Rooms J Church Hill Theatre J Drill Hall J King’s Theatre J Leith Theatre J Queen’s Hall J

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Meadowbank J Ross Bandstand J RHSG J Royal Museum* J TattooKastle Esplanade J Usher Hall* J

Development of new provision - high priority

Ixxv) The main gap identified via the demand and supply assessment relates to the provision of a suitable venue for hosting medium - large scale rocWpop concerts. Therefore, it is recommended that the Council investigate potential partnership opportunities with the private sector to deliver either a medium scale venue (ie with capacity of circa 4,000 - 6,000) or a hybrid multi-use arena.

Ixxvi) For such a venue, the quality of interior design and flexibility will be key to securing the optimum attendee experience and securing the support of artists/promoters, which will play a key role in determining the supply of events. lxxvii) If a new hybrid venue were to be developed, with the technical ability to reduce capacity to circa 1,000, it could also:

e be used to provide additional meeting and conference provision, which has been consistently raised as an issue by SEEL and the City’s hoteliers

e with a flexible design, meet the venue requirements of a number of other art forms (eg dance) that alone, would not be commercially viable

e if possible, be located at the City’s Waterfront, in order to meet key strategic objectives of further developing the area/providing an iconic visitor destination.

Ixxviii) Should a new medium scale or hybrid venue not prove to be viable, other potential solutions should be considered which could also meet the identified gap for medium - large scale rocWpop concerts. These options comprise:

e the re-development of existing buildings to also cater for rock/pop concerts, such as King’s Theatre or Leith Theatre

e the inclusion of a 10,000 seat end stage within the re-development plans at Meadowbank Stadium

e the facilitation of the RHSG in planning and development terms, (should the current master planning study confirm the deliverability of a 10,000 seat arena, within their re-location plans), given the wider economic benefits and likely contribution that such a facility would bring in terms of elevating Edinburgh as a contemporary ‘must see’ capital City.

Development of new provision - medium priority

Ixxix) The catchment area analysis, combined with the strength of the Fringe with regard to comedy, suggests that there may be scope to deliver a successful comedy venue in the City potentially using an existing venue that could be converted to a suitable configuration for comedy, while retaining suitability for the Festivals. Whilst the

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Council and SEEL would not invest in and assume the risk associated with securing a Comedy Store franchise for the City, it is recommended that there be scope for input to facilitate the delivery of such a venue.

Ixxx) The proposed plans for a Moving Image Centre scored above average against the priority investment matrix, given its potential contribution to ‘year round’ provision and the likely cultural and community impact. As a result, it is recommended that the moving image centre proposals be given serious consideration.

Other new venue proposals

Ixxxi) Research and consultation conducted for the study also raised requests for other new cultural venues in Edinburgh, most notably:

0 a red carpet film venue

0 mid-sized classical concert venue (1,200 - 1,500).

Ixxxii) However, when assessed against the investment matrix, both proposals scored significantly below average. Given this assessment, together with the level of existing provision currently available and likely demand; it is not recommended that these projects be taken forward in their current format.

Other issues

Ixxxiii) In order to successfully elevate Edinburgh’s cultural venues and move the City towards its vision, it is essential that the key issues identified outside of the cultural infrastructure be addressed -the most notable issues are set out below. Product Ixxxiv) The research and consultation has highlighted that Edinburgh appears to attract significantly less major touring ‘product’ than other comparable cities outside the Festival months.

Ixxxv) Given the relatively small total catchment population available to Edinburgh (by comparison with other UK cities), encouraging repeat visits is essential to sustaining venues on a commercial basis and therefore, ensuring a quality experience and good range of ’product’ are of paramount importance. Therefore, it is vital that a range of options are considered to increase the amount of ‘product’ in Edinburgh, which could include:

0 the Council working with the City’s venues to explore opportunities to produce more events between them to contribute to the events calendar

0 Edinburgh and Glasgow, or indeed other UK cities, seeking to complement each others offer, particularly in terms of theatre product, where venues could forge reciprocal producingheceiving arrangements

0 the Council considering increased partnership opportunities with commercial promoters to assess options for supporting either the City as a whole or individual venues in this area

0 reviewing the City’s annual events calendar with a view to encouraging more events to take place throughout the year to address the challenges of under- utilisation experienced outside the peak months. This would require longer- term strategic planning and more pro-active development of an events

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programme that does not displace current activity but creates more reasons for audiences to visit the City outside August and September.

Management arrangements lxxxvi) Across the City, the cultural venues are currently owned and managed by a range of differing organisations. Therefore, it is recommended that further investigations be carried out to explore the potential benefits of alternative management arrangements for the City’s cultural venues. In particular, consideration should be given to:

0 the scale and management of the not-for-profit sector, where it is considered that there is management duplication and potential competition, where combined working may have improved outcomes in terms of venue management, product and finances

0 exploring the opportunities for increasing the number of privately managed venues, particularly given the fact that a number of commercial agencies have expressed a keen interest in acquiring additional facilities in Edinburgh. In particular, provision of a new popular music venue may be achieved through this route

a exploring the opportunities for a wider review of Council provision in the galleries, museums and libraries sector, which might fit within an alternative management or asset vehicle

0 the potential for the development of a major asset based not-for-profit vehicle to manage all cultural venues across the City, that would include the national galleries and museums also.

Leadership lxxxvii) The issue of leadership arose in almost every part of the consultation, most usually in relation to who will take forward the ideas and recommendations that will emerge from this study. In essence there were three general observations:

0 that there is a perceived lack of clarity regarding whose primary responsibility the cultural infrastructure of Edinburgh is and that this has often translated into an apparent inertia

0 that a champion is required if any development of significance is to take place in the future

0 that new cultural infrastructure need support and a clearer path to fruition.

Ixxxviii)Therefore, it is recommended that a consortium of interests including representation from CEC, the Scottish Government, the cultural sector and the private sector be established to drive forward cultural provision. This consortium should comprise membership at the highest level of civic and private sector leadership, and be serviced by senior staff from each area. The Festival Forum may offer a useful model to consider.

Cu Itu ral ecology Ixxxix) Consultees also highlighted the need to view any future developments as part of a larger ‘cultural ecology’ of the City in which the built infrastructure is an important, but by no means isolated, part. Therefore, although outside the scope of this study, it is important to cons ider:

City Cultural Venues Study - Final Report Page xxiv EXECUTIVE SUMMARY

e venues with a capacity of less than 200, which provide ‘the training ground for the directors, performers, administrators and technical staff that will move on to the bigger venues’

e other traditionally, non-event based cultural facilities; such as libraries, museums, galleries and studies, which all form an extremely important part of the City’s cultural ecology.

In addition, there is a need to re-examine the current responsibility for supporting, particularly financially, the various elements of the City’s cultural ecology with a view to establishing an appropriate allocation of roles and resources.

Collaboration and partnership xci) There may also be merit in encouraging greater levels of collaboration and partnership, for example:

e major venue owners could consider developing a single system of space booking

e there is also potential for some venues to develop touring networks with like- minded venues elsewhere in the UK and perhaps internationally.

Need for innovative funding solutions xcii) Improving the offer of Edinburgh’s cultural venues will require significant levels of investment. Given the scale of investment which is likely to be required into cultural venue provision (estimated to be between €200-€250m) there is a need for significant large scale thinking to deliver the required solution. xciii) Potential funding mechanisms identified include:

0 prudential borrowing and the PWLB

e development finance and association with Project Edinburgh

e tax increment financing

the development of a Cultural Fund xciv) Whilst there are likely to be significant political sensitivities around some of these suggestions, it is strongly recommended that the potential overarching financial solutions set out above are given careful consideration, as opposed to a piecemeaVproject-by-project based solution.

City Cultural Venues Study - Final Report Page xxv EXECUTIVE SUMMARY

Table 9 - Cultural venue provision (minimum capacity of 200 seats)

0 Church Hill Theatre 0 The Queen’s Hall

0 Edinburgh Festival Theatre Reid Concert Hall

0 Edinburgh Playhouse Ross Theatre

0 Festival Theatre Royal Lyceum Theatre 0 George Square Theatre St. Brides Centre

0 The Jam House Stewart’s Melville College

0 Jongleurs Performing Arts Centre

0 King’s Theatre The Bongo Club 0 Leith Theatre Traverse Theatre

0 McEwan Hall Usher Hall

Mixed use venues 0 Appleton Tower Hopetoun House

0 Assembly Hall Mansfield Traquair 0 Assembly Rooms Ocean Terminal

0 Central Hall Out of the Blue Drill Hall

0 Dynamic Earth 0 Edinburgh Corn Exchange The Hub

0 Edinburgh Zoo

Clubs 0 Cabaret Voltaire 0 Club Ego

0 City of Edinburgh Nightclub 0 The Liquid Room

Cinemas 0 Cameo Cinema 0 Odeon Lothian Road

0 Cineworld Fountain Park 0 Odeon West Hailes

0 Dominion Cinema 0 Vue Ocean Terminal 0 Filmhouse 0 Vue Omni Centre

Outdoor spaces 0 Edinburgh Castle and 0 Princes Street Gardens Esplanade 0 Royal Highland Showground

Reference buildings 0 Royal Museum and 0 Signet Library National Museum of Scotland

Sporting venues 0 Stadium 0 Murrayfield 0 Edinburgh International 0

Climbing Arena 0 Tynecastle Stadium 0 Meadowbank Sports Centre - Conference venues 0 David Hume Tower 0 Lennoxlove House Lecture Theatres 0 Pollock Halls 0 Edinburgh Conference 0 Centre 0 Royal College of 0 Edinburgh International Physicians Conference Centre 0 Surgens Hall 0 Michael Swann Lecture 0 William Robertson Lecture Theatre __ Theatre Galleries National Gallery and Royal 0 WASPS Studio Scottish Academy Churches 0 St. Giles Cathedral 0 St. Mark’s Unitarian St. Cuthbert‘s Parish Church Church 0 Stockbridge Parish Church St. George’s West Church

City Cultural Venues Study - Final Report Page xxvi Appendix 4 - List of Consultees

Abigail Arthurs Ocean Terminal Adnan Harrls Queens Hall Alan Henderson City of Edinburgh Council Alison Reeves WHALE Alison Riach Edinburgh International Festival Allan Murray Royal Highland Showground Ally Hill Bongo Club Andrew Crummy Craigmillar Community Arts Centre Andrew Holmes City of Edinburgh Council Ann MacDonald Leith Theatre Anne Bonnar Scottish Arts Council/ Creative Scotland Anthony Alderson Pleasance Theatre Armida G L Taylor The Fruitmarket Gallery Barbara Smith Historic Scotland Belle Doyle Scottish Screen Ben Carter VisitScotland Bob Brodie St Andrew’s & St George’s Church Bob Downie Royal Yacht Britania Brian Kabatznick AEG Europe Bndget McConnell Culture and Sport Glasgow Council Carol Hogel Dunard Fund Carol Stobie National Libraries Scotland Caroline Brophy Festival and Caroline Gillespie Festivals oftice, University of Edinburgh Chris Barnes Edinburgh Unrverstty/Edinburgh First Clara Wheelan Historic Scotland Cllr Tom Buchanan City of Edinburgh Council Colin Hunter Waterfront Edinburgh Ltd Colin McLean Heritage Lottery Fund Connor Breen The Communication Group Darrell Williams Festival and Kings Theatre Dave Anderson Scottish Enterprlse Edinburgh and Lothian I Crty of Edinburgh Council David Vickers Live Nation David Butteworth Royal Lyceum Theatre David Cook WASPS David Hazeman Jam House David Leven Development Solutions Team Leader Scottish Enterprise Edinburgh and Lothian David Tildesley Royal Lyceum Theatre Dawn Kemp Surgeons Hall

Deidre Brock City of Edinburgh Council Diane Stein St Mark‘s Unitarian Church Donald Emslie Royal Lyceum Theatre Donald MacDonald Scottish Chamber Orchestra I

Page 174 Donald McGougan City of Edinburgh Council Donald Smith Scottish Storytelling Centre Doug MacKenzie Forth Ports Dr Gordon Rintoul Museum of Scotland/Royal Museum Dr Simon Gage Science Festival Elizabeth Andrews Scottish Ensemble Eric Dryden Historic Scotland Esther Blackbum The Storytelling Centre Faith Liddell Festivals Edinburgh Faye Ward Acoustic Music Centre @ St Brides Fillian Arnot Tram TimeKlE Ltd Fiona Alexander Assembly Direct Fiona Sturgeon Scottish Arts Council Frank Little City Arts Centre (CQ of Edinburgh Council) Gillian Swanney Scottish Enterprtse Edinburgh and Lothian Gillian Urquhart Historic Scotland Ginnie Atkinson Edinburgh International Film Festival Gwen Orr Church Hill Theatre (City of Edinburgh Council) Heather Jack Scottish Government Henry Micklem Meadows Chamber Orchestra lain Howy Cameo Cinema Ian Munro Scottish Arts Council Ian Spence Hibernian Football Club Jackie McMillan Scottish Enterprtse Edinburgh and Lothian Jackie Skinner Assembly Rooms (CQ of Edinburgh Council) James Holloway National Portralt Gallery James Howarth Edinburgh Playhouse James McKenzie Filmhouse Jan-Bert van den Berg ArtLink Edinburgh and Lothians Jane Dennyson Waterfront Edinburgh Ltd Jeanette Harris Scottish Book Twst

Jenny Dawe City of Edinburgh Council Jenny lnglls National Gallery/Royal Academy Jim Clark Festival and Kings theatre Jim Inch City of Edinburgh Council Jim Tough Scottish Arts Council

Jim Welsh Edinburgh Jazz Projects, Lelth Folk ClubiStoneyport association Joanna Baker Edinburgh International Festival Joanne Brown Edinburgh Art Festival John Harris Hebrides Ensemble John Mason Scottish Government John Stalker Festival and Kings theatre John Sutherland SMG Europe Jon Morgan Fnnge Festival Jonathan Guthrie City of Edinburgh Council Jonathan Mills Edinburgh International Festival Joy Campbell Corn Exchange Julie Franchetti Scottish Enterprise National Karen Koren Karl Chapman Ross Bandstand/Usher Hall

Page 175 Kate Wimpress North Edinburgh Arts Centre Kath Mainland Edinburg International Book Festival Kathy Knowles Central Hall Keith Anderson Waterfront Development Partnership Ken Hay Scottish Screen

Kenneth Wardrop City of Edinburgh Council Leslie Evans Scottish Government Leslie Smith Liam Sinclair The Edinburgh Mela Linda Crooks Royal Lyceum Theatre Linda McPherson Scottish Enterprise Edinburgh and Lothian

Liui Nicoll Federation of Scottish Theatre Lorna Brain Edinburgh Unwersity Louise Mitchell Glasgow Royal Concert Hall Lucy Mason National Companies Unit Lucy Parsons Forth Ports Cruise Liner development Maggie Corr City of Edinburgh Council Malcolm Fraser Architect Marion Brown Canongate Kirk Mark Mackie Regular Music Mark Thomson Royal Lyceum Theatre Martin Hinds City of Edinburgh Council Mary McGookin City of Edinburgh Council Matthew Rooke Scottish Cultural Enterpnses Mhora Samuel Theatres Trust Michael Menllo Scottish Book Trust Mike Connelly Tram Time Mike Grifftths Traverse Theatre Mike Spells City of Edinburgh Council Murray McFarlane City of Edinburgh Council Norman Rowan The Caves Pam Turnball City of Edinburgh Council Paul Bush EventScotland Paul Gudgin Previously Edinburgh Fnnge Pete Williamson National Museums Scotland Enterpnses Ltd Raoul Barbier City of Edinburgh Council Ray Jones Royal Highland Showgmund Ray MacFarlane Creatwe Scotland Richard Hambleton Edinburgh Military Tattoo Richard Holloway Creative Scotland Richard Jeffrey Edinburgh Tourism Action Group Rob Connor The Hub/Edinburgh lnternation Festival and Edinburgh Festival Committee Rob Hoon Out of the Blue Dnll Hall Robert McFall Mr McFalls Chamber Robert Pirrie The Signet Library Robert Rae Theatre Workshop Edinburgh Roger Spence Assembly Direct /Jazz and Blues Festival Ros Davies Science Festival Ros Davis Edinburgh Film Focus Ros Lamont The Audience Business

Page 176 Roy McEwan Scottish Chamber Orchestra Nancy Campbell Sarah David Cabaret Voltaire Sarah Jane Johnson Assembly Hall I Edinburgh First Sarah Munro Collective Gallery Shona Clelland Assembly Rooms (City of Edinburgh Council) Simon Williams Edinburgh Principal Hoteliers Association Solen Collett Cabaret Voltaire Stephen Gallagher Scottish Enterprlse Edinburgh and Lothian Steve Cardownie City of Edinburgh Council Steve McGavin City of Edinburgh Council

Sue Stewart Edinburgh Convention Bureau Susan Watson Scottish Enterprise Edinburgh and Lothian Susan Whlte National Association of Youth Orchestras Tony Reekie lmaginate / Childrens festival Veronikka Kallus St Giles Cathedral William BurdeiteCoutts Assembly Theatre Zoe Squair ]Dancebase I

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